LONDON (Alliance News) - The Real Good Food Co PLC on Monday said it expects to have made net sales of GBP104 million and earnings before interest, tax, depreciation and amortisation of GBP5.3 million for continuing operations in its recently-ended financial year, an improvement on the year, and said current trading is doing well.
The food business said it has made a continued strong performance in both its ingredients company Renshaw and bakery business Haydens, adding that its net debt at the year to March 31, prior to the disposal of its sugar business Napier Brown, was GBP30.1 million.
The disposal of Napier Brown generated GBP34 million, plus estimated working capital at completion of GBP7 million, resulting in a positive cash position at completion of around GBP13.7 million, Real Good Food said.
The group's remaining debt comprises a deferred payment of GBP2.6 million for the acquisition of cake decoration firm Rainbow Dust Colours, and loan notes of GBP2.8 million, the company added.
Real Good Food noted that trading in the early weeks of the current financial year has continued in a "positive fashion" and said it is optimistic about the prospects for the full year.
"Now that the disposal of Napier Brown has been completed, we can focus on developing our other businesses, all of which present growth opportunities. The performance of our cake decorating businesses continues to be encouraging, while Haydens is also trading strongly as it broadens its customer base. Our strong cash position will enable us to pursue capital investment plans to support our growth strategies, and we will also consider complementary acquisitions where appropriate," Chairman Pieter Totté said in a statement.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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